More on this...

Treasury Secretary Jacob Lew suggested on ABC's "This Week" on Sunday that the federal government would largely stay out of the bankruptcy proceedings.

"I think when it comes to the questions between Detroit and its creditors, that's really something that Detroit is going to have to work out with its creditors," Lew said.

According to The Times, though, other cash-strapped cities like Chicago are also contemplating shifting retirees onto the insurance exchanges.

That assumes, however, that the exchanges and the rest of the law launch as scheduled at the beginning of 2014. After the administration delayed for one year a requirement on mid-sized and large businesses to provide employee coverage, Republicans are pushing to delay the requirement on individuals to buy insurance. It's an uphill battle for Republicans, but any widespread delay in the mandates could imperil -- or delay -- the overall system.